Switzerland has the second highest score on the Standard of Living Index. It's the only nation on Earth with a direct democracy.
Here's a step-by-step summary of how direct democracy works in Switzerland: [1] [2]
One: Citizens elect their representatives.
Two: Representatives write proposals for new laws.
Three: Using polls, they ask citizens how they feel about each proposed law. If the majority of the public dislikes it, legislators usually won't pass it. But they can still try. If so, step four happens.
Four: If within a few months, 1% of the population signs a petition that's against a proposed law, a vote is held on whether to veto it (stop it). Petition signatures must be gathered within a certain number of months. This is usually done with the aid of volunteers and non-profit organizations.
Five: If the majority of voters vote "no" to the proposed law, it's successfully vetoed (stopped). Legislators cannot implement it even if they want to. If the majority of voters agree with the bill, it passes. Another way it can pass is if there's no petition to stop it. Via the petition system, citizens can make changes to or overturn laws that were passed previously. Citizens can also create entirely new laws. If enough signatures are gathered, the people will vote on whether the citizen-created bill becomes law.
Six: If within 18 months, 2% of the population signs a petition that declares changes to the country's constitution, a vote is held on whether those changes become law. Constitutional changes also require the approval of the majority of cantons, which are like states in the US.
Seven: Citizens may vote at booths, voting machines, or by mail. Some cantons allow internet voting [3]. There are security measures that prevent voter fraud, which is virtually nonexistent there.
Switzerland has the second highest quality of life on Earth. If that's what tyranny of the majority looks like, the world needs more of it, not less.
A few states in America have elements of direct democracy, but barely. Unlike Switzerland, the United States' judicial system has the final say over every law. In states where citizens can vote on policies, like California, the courts overturn many of the propositions passed by the people. Even if 99% of the population and representatives wanted a particular law, but the majority of Justices didn't, then the Justices would get their way.
Also, the number of signatures required before individuals can vote on a petition is as high as 10% in some states [4]. And they must be collected within days. That's virtually impossible.
And, unlike Switzerland, there's no direct democracy at the national level. The Constitution cannot be changed by popular vote either.
United States judges are heavily influenced by campaign contributions and lobbying from special interests. I explore this topic later.
Some types of judges aren't elected in the US. For instance, the President appoints the Supreme Court Justices. That might be okay in theory, but the President is influenced by campaign contributions and lobbying—like every other politician. He or she will often appoint Justices that represent the special interests that funded his or her campaign.
No other country has a genuine direct democracy like Switzerland. No matter how corrupted its politicians are by money, the people always have the final say over every law. This is a major contributing factor to the nation's success.
History has shown that greater democratization always resulted in improved living standards. So the fact that Switzerland has the second highest quality of life on Earth is not the least bit surprising.
In addition to its strong political democracy, Switzerland is economically democratic as well. Like the Nordic countries, it has among the best scores on economic freedom indices such as the Index of Economic Freedom, Ease of Doing Business Index, Economic Freedom of the World Index, and the Global Enabling Trade Index. Like Scandinavia, Switzerland has low tariffs and few trade barriers. It's easy to start a business there. There are few restrictions on companies, and bureaucracy is slim. Fees, forms, permissions, inspections, hearings, certification requirements, reporting requirements, legal procedures, and other types of red tape for starting and running a business are kept to a minimum.
Because of its friendliness to business and international trade, Switzerland has one of the highest per capita GDPs in the world. It also has a high scientific output and a low unemployment rate. Investors and innovators gravitate to places where they are free to put their money and skills to use.
Though Switzerland is economically democratic, it's not libertarian. The country aggressively redistributes income through welfare programs, though not to the extent of Scandinavia. If it did, it would probably score first on my index.
Switzerland and the Nordic nations prove that income redistribution isn't incompatible with economic freedom. It actually enhances it. It does this by ensuring that employees keep a larger share of the fruits of their labors. Having more purchasing power increases their participation in the economy as consumers and investors.
Switzerland is a country of several million people and is far from homogenous. It's culturally and ethnically diverse. It isn't a lucky, tiny village of easy-to-govern white people—a misconception held by some of my American peers.
To recap, strong political and economic democracy is why Switzerland and the Nordic countries have the greatest living standards in the world. Australia, New Zealand, and Canada also score well on indices that measure political and economic freedom, hence their high scores on my index as well.
Notes
1. "Switzerland's Referendums." Referendums in Switzerland's System of Direct Democracy. Accessed February 09, 2016. http://direct-democracy.geschichte-schweiz.ch/switzerlands-system-referendums.html.
2. "Popular Initiatives." How Is a Popular Initiative Launched and Where Are Signature Lists Obtainable? Accessed February 09, 2016. https://www.ch.ch/en/popular-initiatives/.
3. "Electronic Voting as Used in Switzerland." Ballotpedia. Accessed February 09, 2016. https://ballotpedia.org/Electronic_Voting_as_used_in_Switzerland.
4. Verhulst, Jos, and Arjen Nijeboer. Direct Democracy: Facts and Arguments about the Introduction of Initiative and Referendum. Brussels: Democracy International, 2007. p. 57-58
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